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The African Development Bank (AfDB) has granted Zimbabwe $5.32 million to improve the governance and accountability of State-owned entities. The grant is part of the Institutional Support for State Enterprises Reform (Isser) project, which aims to strengthen the governance and management of public entities, reduce fiscal risks, and facilitate economic recovery. The project began in August 2022 and will run until September 2026. AfDB said, in its procurement notice released last Thursday:
<blockquote>
The government of Zimbabwe has received a grant, an amount of UA4 million (US$5,3 million) from the African Development Fund, to finance the Institutional Support for State Enterprise Reform project.
This project aims to strengthen good governance and enhancing accountability through supporting interventions regarding public administration, improved service delivery and financial management (PFM). The project will enhance Zimbabwe’s capacity to effectively translate into action and implement the existing corporate governance and PFM provisions.
</blockquote>
The grant comes from AfDB’s African Development Fund, which supports economic and social development in 38 least-developed African countries through concessional funding for projects and technical assistance, <a href="https://www.newsday.co.zw/business/article/200021468/zim-govt-receives-afdbs-us53m-grant">NewsDay</a> reported. The funds will be used to enhance accountability, improve public administration, service delivery, and financial management. The project will also support the implementation of the hybrid ownership model for State enterprises and parastatals.
Zimbabwe requires State enterprise reforms as over 100 State-owned entities are technically insolvent. Weak corporate governance, corruption, poor financial performance, and ineffective monitoring and evaluation have limited their ability to deliver services. The challenges facing these entities include outdated technology, inadequate working capital, and huge debt overhang. The AfDB grant aims to address these issues and support the recapitalisation of State entities.
The government of Zimbabwe is also considering the partial or full privatisation of State-owned enterprises as part of the reform process. The AfDB grant will contribute to strengthening governance and management practices, reducing fiscal risks, and promoting economic recovery in Zimbabwe.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Zimbabwe Receives US$5.32 Million Grant From AfDB For SOE Recapitalisation

The ruling ZANU PF party has reportedly appealed to State-owned parastatals to exhibit at its Congress slated for this week for a cost between US$3 000 and US$6 000.
Considering that Zimbabwe has 107 such enterprises, the party could potentially raise between US$321 000 and US$642 000 from parastatals alone. 
ZANU PF is holding its 7th National People’s Congress from 26 to 29 October, the first since the ouster of the late former leader and President Robert Mugabe who was deposed in November 2017.
ZANU PF secretary for finance Patrick Chinamasa asked the parastatals to exhibit at the congress, according to letters seen by <a href="https://www.newsday.co.zw/local-news/article/200002488/zanu-pf-leans-on-parastatals-to-fund-congress">NewsDay</a>. 
The letters were copied to Zanu PF secretary for administration Obert Mpofu and deputy secretary for finance Tshinga Dube. Read the letters:
<blockquote>
The Zanu PF party is appealing for your co-operation to utilise space allocated to advertise your products and services during the Zanu PF 7th National People’s Congress scheduled for between October 26 and 29, 2022.
The party is selling exhibition space as follows: 6-metre x 3-metre cubicle, US$6 000 or ZWL equivalent at the official auction rate and for 3-metre x 3-metre cubicle US$3 000 or ZWL equivalent at official RBZ auction rate. 
</blockquote>
However, a top official from a parastatal under the ICT ministry told NewsDay that most parastatals had no financial capacity to fund the exhibitions. Said the source:
<blockquote>
We are broke and we do not get government support but we are being forced to pay these large amounts to sponsor this event which is not fair on our part. Where do we find such amount of money when there is not enough already to fund our retooling efforts?
</blockquote>
It’s not the first time ZANU PF has been accused of using parastatals and State-owned enterprises as cash cows for its events.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

ZANU PF Appeals To Parastatals To Exhibit At Its Congress

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